The role of technological innovation in shaping the relationship between intellectual capital (IC) and firm performance in the industrial sector has garnered increasing attention, particularly within the context of Indonesia, where research in this area has been limited. This study explores the influence of the IC on firm performance, with a specific focus on the moderating impact of technological innovation. The research focuses on industrial firms listed on the Indonesian Stock Exchange (IDX). Data is collected using the purposive sampling technique and examined using the OLS estimation process employing multiple regression analysis. The findings reveal that Structural Capital Efficiency and Capital Employed Efficiency demonstrate a significant positive influence on firm performance. Additionally, Technological Innovation and Human Capital Efficiency do not show a significant influence. Concerning the moderating variable, Interestingly, this study has established that there is a weakening effect of TI on the relationship between SCE and firm performance while CEE remains unaffected. This study, while insightful, is limited by its sector-specific focus and the short duration of the data from 2018 to 2022. The adjusted R-squared value of 55.6% suggests the presence of unexplored variables. Future research could benefit from a wider sectoral scope, an extended data timeline, and the inclusion of additional variables.
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